Buyers Information
Welcome to the exciting world of real estate! If you're considering purchasing a property, we understand that the process might seem daunting. To help you navigate seamlessly through each step, we've outlined a comprehensive guide that demystifies the real estate transaction journey.
Step 1: Define Your Goals and Budget
Before diving into the market, it's crucial to determine your goals and establish a realistic budget. Consider your needs, preferences, and long-term plans to ensure the property aligns with your lifestyle.
- Remember to include legal fees, land transfer tax, mortgage insurance and utility hookups in your total cost.
- Know the costs of a home inspection and home appraisal or survey.
- Moving costs can vary based on volume, distance and whether you hire a professional mover. Have wiggle room in your budget to cover the cost.
Step 2: Get Pre-Approved for a mortgage
Speak with a mortgage lender to get pre-approved for a loan. This step provides a clear understanding of your budget and strengthens your negotiating position when making an offer.
Step 3: Engage a Real Estate Agent
Partner with a seasoned real estate agent who understands your goals. They'll guide you through the entire process, from property search to closing, ensuring a smooth and informed experience.
Before you sign a buyers representation agreement, make sure you know what it means, how long it will be in effect and what the different clauses mean. Ask questions and seek independent legal advice if you’d like a second opinion.
Step 4: Property Search
Your agent will help you explore listings that match your criteria. Attend open houses, conduct virtual tours, and provide feedback to narrow down your options.
Look into the age and condition of the home’s systems, such as plumbing and electrical. Find out if proper permits were received for any renovations. Consider a home inspection to further examine the home and don’t hesitate to ask questions.
Step 5: Make an Offer
Once you find the perfect property, your agent will assist in crafting a competitive offer. Negotiations may follow, and once an agreement is reached, you'll enter into a purchase agreement.
If possible, make your offer conditional on mortgage financing, a home inspection, the sale of your existing home, or other factors that are important to you. These conditions can provide you with additional assurances and protection.
Make your offer as detailed as possible. Outline what will be included with the sale (for example, appliances and light fixtures) and be clear if certain renovations or repairs need to be completed prior to closing, based on the home inspection.
If you encounter a competing offer situation, enter with a strategy. Set ground rules in advance about what you want from a home, what you’re willing to spend and what conditions must be met. Once your rules are set, stick to them. When there are competing offers it can be tempting to waive your conditions (such as a home inspection). Think twice before doing this.
Step 6: Home Inspection
A professional inspection ensures the property is in good condition. Any issues discovered can be negotiated with the seller or addressed before moving forward.
When you purchase a home, it’s often recommended that you have a home inspection done. This is one of the most common conditions in an offer to purchase a property.
When real estate markets are extremely active and you really want a particular home, skipping the home inspection and not placing this kind of condition in an offer can be tempting. Before you make the decision, consider the benefits of a home inspection.
If there is a Seller Property Information Statement (SPIS), you may receive a copy and have a general sense of comfort about the history of the property. However, you should keep in mind that the person selling the home may not be aware of property defects and that the information provided in the SPIS is based only on their personal knowledge.
Similarly, the real estate agent representing you in the transaction may have the experience to identify visually obvious defects, but underlying problems can exist.
A qualified and experienced home inspector will examine the major systems in the home such as:
- Electrical
- Roofing
- Plumbing
- Heating/Air Conditioning
- Foundation
- Septic Systems
Many home inspection companies encourage you to attend the inspection and ask the inspector questions during the process and about the results of the inspection. The decision is yours to make, but you will be better informed and able to assess whether or not you want to invest in any upgrades or repairs that might be needed.
Step 7: Secure Financing
Finalize your mortgage application and work closely with your lender to ensure a smooth financing process.
Your agent will coordinate with all parties involved to meet the necessary deadlines.
Step 8: Appraisal
The lender will order an appraisal to confirm the property's value aligns with the purchase price. This step is crucial for securing the mortgage.
Step 9: Closing Preparation
Your agent and the title company will coordinate the closing logistics, including finalizing paperwork, arranging a final walkthrough, and addressing any remaining issues.
Step 10: Closing Day
Congratulations! On closing day, you'll sign the necessary documents, transfer funds, and officially become the proud owner of your new property.
*Does your closing date on your new home align with when you need to move out of your existing home? Have a contingency plan in place in case the dates don’t match up.
Step 11: Post-Closing
Your agent will provide guidance on tasks like setting up utilities, changing your address, and transitioning smoothly into your new home.
Remember, our team is here to support you every step of the way. If you have any questions or concerns, feel free to reach out. Happy home hunting!